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CFR  

Code of Federal Regulations Pertaining to ESA

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 525  

Employment of Workers With Disabilities Under Special Certificates


29 CFR 525.3 - Definitions.

  • Section Number: 525.3
  • Section Name: Definitions.

    (a) FLSA means the Fair Labor Standards Act of 1938, as amended.
    (b) Secretary means the Secretary of Labor or the Secretary of 
Labor's authorized representative.
    (c) Administrator means the Administrator of the Wage and Hour 
Division, U.S. Department of Labor, or the Administrator's authorized 
representative.
    (d) Worker with a disability for the purpose of this part means an 
individual whose earning or productive capacity is impaired by a 
physical or mental disability, including those relating to age or 
injury, for the work to be performed. Disabilities which may affect 
earning or productive capacity include blindness, mental illness, mental 
retardation, cerebral palsy, alcoholism, and drug addiction. The 
following, taken by themselves, are not considered disabilities for the 
purposes of this part: Vocational, social, cultural, or educational 
disabilities; chronic unemployment; receipt of welfare benefits; 
nonattendance at school; juvenile delinquency; and, correctional parole 
or probation. Further, a disability which may affect earning or 
productive capacity for one type of work may not affect such capacity 
for another.
    (e) Patient worker means a worker with a disability, as defined 
above, employed by a hospital or institution providing residential care 
where such worker receives treatment or care without regard to whether 
such worker is a resident of the establishment.
    (f) Hospital or institution, hereafter referred to as institution, 
is a public or private, nonprofit or for-profit facility primarily 
engaged in (i.e., more than 50 percent of the income is attributable to) 
providing residential care for the sick, the aged, or the mentally ill 
or retarded, including but not limited to nursing homes, intermediate 
care facilities, rest homes, convalescent homes, homes for the elderly 
and infirm, halfway houses, residential centers for drug addicts or 
alcoholics, and the like, whether licensed or not licensed.
    (g) Employ is defined in FLSA as to suffer or permit to work. An 
employment relationship arises whenever an individual, including an 
individual with a disability, is suffered or permitted to work. The 
determination of an employment relationship does not depend upon the 
level of performance or whether the work is of some therapeutic benefit. 
However, an individual does not become an employee if engaged in such 
activities as making craft products where the individual
voluntarily participates in such activities and the products become the 
property of the individual making them, or all of the funds resulting 
from the sale of the products are divided among the participants in the 
activity or are used in purchasing additional materials to make craft 
products.
    (h) Special minimum wage is a wage authorized under a certificate 
issued to an employer under this part that is less than the statutory 
minimum wage.
    (i) Commensurate wage is a special minimum wage paid to a worker 
with a disability which is based on the worker's individual productivity 
in proportion to the wage and productivity of experienced nondisabled 
workers performing essentially the same type, quality, and quantity of 
work in the vicinity in which the individual under certificate is 
employed. For example, the commensurate wage of a worker with a 
disability who is 75% as productive as the average experienced 
nondisabled worker, taking into consideration the type, quality, and 
quantity of work of the disabled worker, would be set at 75% of the wage 
paid to the nondisabled worker. For purposes of these regulations, a 
commensurate wage is always a special minimum wage, i.e., a wage below 
the statutory minimum.
    (j) Vicinity or locality means the geographic area from which the 
labor force of the community is drawn.
    (k) Experienced worker means a worker who has learned the basic 
elements or requirements of the work to be performed, ordinarily by 
completion of a probationary or training period. Typically, such a 
worker will have received at least one pay raise after successful 
completion of the probationary or training period.
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